July 24, 2018
Reprinted with permission from Inframation News
Draft infrastructure legislation introduced by House Transportation and Infrastructure Committee on July 23 contains an incentive program for infrastructure asset recycling, and establishes a P3 pilot program for federal buildings. In addition to containing an asset recycling program and establishing an incentive grant program, the draft legislation also directs the General Services Administration to initiate a pilot program to complete three to five building projects as P3s. The draft bill also reauthorizes the Water and Infrastructure and Innovation Act (WIFIA) program, allowing the Army Corps of Engineers to enter into an agreement with the Environmental Program to service loans to the Corps’ WIFIA program. According to a committee statement, the authorization for coverage of credit risk premiums will help leverage private-sector dollars and expertise in railroad infrastructure projects.
“I’m very pleased that the conversation about national infrastructure and P3 policy has begun,” said Marcus Lemon, partner at Nelson Mullins. “I think this will be one of the most important points in American history with respect to the future of American infrastructure and public-private partnerships.”
“The incentives set aside is very innovative and will encourage leasing to the private sector that will result in much-needed infrastructure improvements derived from the proceeds of such leases,” praised Lemon of the National Infrastructure Program. Lemon also led the transition team for transportation and infrastructure for President Trump.
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